Coffee is the world’s second most valuable traded commodity behind oil. Coincidentally, it’s also the second most valuable commodity in my life, behind sustenance, of course.

Even with its availability worldwide, the competition of growing gourmet coffee shops is increasing exponentially. Several heavy hitters have already established their ranking in the coffee shop hierarchy and are depending on new ideas and concepts to keep them competing advantageously in the saturated market, by offering more food options, loyalty programs, and new drink recipes to keep their patrons coming back. I fear that it may be only a matter of time before we see a maple bacon orange mocha Frappuccino resurrecting at coffee counters everywhere, but that’s another story.

As the monstrous chains like Starbucks and Dunkin’ Donuts continue to dominate markets around the world, independent coffee shops and smaller, regional chains are finding ways to break into new markets, as well. These smaller coffee shops and cafes are using alternative strategies that extend beyond the brand association and 52 ounce sugary concoctions offered by the larger chains.

Take, for instance, PJ’s Coffee of New Orleans. The brand was founded 35 years ago - about seven years after global coffee leader Starbucks was founded in Seattle – and is now breaking into the rest of the country with a strong, loyal following and about 70 locations across the Gulf Coast region already under its umbrella. Additionally, the company’s success and strong customer base have made it difficult for the larger, established brands like Starbucks to succeed in the region, specifically New Orleans, which has long been resistant to national chain restaurants. This phenomena has also been evident in countries like Australia and Italy, where huge chains have had difficulty penetrating into the markets.

But, how exactly can PJ’s, as well as other independent cafes, compete with the Starbucks and Caribous of the world?

I’m glad you asked.

1. Quality over quantity

While some companies are busy creating the maple bacon orange mocha Frappuccino, others are sticking to the basics of coffee consumption, and focusing solely on the simple act of infusing copious amounts of caffeine into the blood stream, with the goal of offering high quality products over quantity and variety. For these businesses, the idea is to be consistent, keep customers caffeinated, and produce fresh, gourmet products.

In the race to create the most marketing hype, coffee companies are forgetting that human beings are creatures of habit by nature. And, the morning coffee routine is no exception, making the coffee industry a high repeating and high referral business by default. The key is to continue to consistently make high quality coffee to keep the customers coming back. By offering the finest coffee every time, the business will speak for itself.

With 1/3 of the nation’s coffee imports landing first on the port of New Orleans, the PJ’s brand has the advantage of creating coffee that is consistently fresh, with an added advantage that allows them to foster relationships with each of their farmers around the world, local roasters located only one mile away from the docks, and a tightknit community of franchisees. Additionally, their coffee makes it to the hands of the consumers within two to three weeks of arriving in New Orleans, making the freshness and familiarity consistently evident in their coffee.

2. Create a niche reputation

Coffee is following in the footsteps of the current craft beer and craft cocktail trends in the food and beverage industry, by focusing on the art and science behind coffee making from bean to cup. Playing a part in the actual craft of coffee making are the farmers, roasters, buyers, shop owners and baristas, who are all contributing to the beverage’s most recent popularity boost.

PJ’s, for instance, builds their entire offer on the familiarity of their product, which also includes a cold brew technique that was implemented 35 years ago when the company was founded. They have developed a niche reputation for their famous iced coffee that comes from applying their signature daily brewing process. PJ’s owners have been adamant in making sure that each franchise continues to implement the same process, which is unique from the way other coffee shops serve their iced coffees and preserves the flavor and strength of the coffee bean.

“We aren’t the establishment,” said Paul Ballard of Ballard Brands, LLC, part owner of the PJ’s Coffee of New Orleans brand. “We have been fortunate enough to remain flexible and grow without compromising the product. One way to lose favor is by swaying away from the company’s original mission.”